The demand curve of a firm under perfect competition is ___________.

a horizontal line

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positive sloped

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parallel to Y axis

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downward sloping curve

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Solution

The correct option is A a horizontal line
The demand curve under perfect competition is also called marginal revenue curve which is a horizontal line parallel to x-axis which means that the price of the commodity remains the same and any amount of quantity can be sold at this prevailing price in the market but a little variation in the price will lead to a fall in demand to zero.

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